Key Takeaways

• Noncompete agreements will be broadly prohibited for Washington‑based workers, regardless of compensation level.
• The ban applies retroactively, rendering existing noncompetes void and unenforceable as of the effective date.
• By Oct. 1, 2027, employers must affirmatively notify current and former workers that their noncompetes are no longer enforceable.
• Limited sale‑of‑business and narrow nonsolicitation exceptions remain.
• Violations carry statutory damages, attorneys fees and enforcement risk even for attempted use of banned provisions.

Washington State has enacted legislation that will eliminate nearly all noncompete agreements for employees and independent contractors, significantly expanding the state’s already restrictive approach to post‑employment restraints. Gov. Bob Ferguson signed House Bill 1155 (the Bill) into law on March 23. The law takes effect on June 30, 2027, with mandatory employer notice obligations to follow. As a result, Washington joins a small number of states that have banned, with limited exceptions, covenants not to compete.

What is banned?

Under the Bill, effective June 30, 2027, employers are prohibited from enforcing, attempting to enforce or threatening to enforce any covenant not to compete, which includes representing to employees that they are subject to a covenant not to compete or entering into or attempting to enter into a covenant not to compete. As a result, the Bill retroactively applies to covenants not to compete...

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